Part I – Financial Information [Financial Statements](index=2&type=section&id=Item%201.%20Financial%20Statements) AIG reported a significant Q1 2024 turnaround with net income attributable to common shareholders reaching **$1.2 billion**, a substantial increase from **$23 million** in Q1 2023, with total assets growing to **$544.1 billion** Condensed Consolidated Statements of Income (Loss) | Indicator | Three Months Ended March 31, 2024 (in millions) | Three Months Ended March 31, 2023 (in millions) | | :--- | :--- | :--- | | **Total Revenues** | $12,578 | $10,984 | | **Total Benefits, Losses and Expenses** | $10,527 | $11,215 | | **Income (Loss) from Continuing Operations** | $1,600 | $(87) | | **Net Income (Loss) Attributable to AIG** | $1,216 | $30 | | **Net Income (Loss) Attributable to AIG Common Shareholders** | $1,194 | $23 | | **Diluted EPS from Continuing Operations** | $1.74 | $0.03 | Condensed Consolidated Balance Sheet Highlights | Indicator | March 31, 2024 (in millions) | December 31, 2023 (in millions) | | :--- | :--- | :--- | | **Total Investments** | $322,216 | $322,672 | | **Total Assets** | $544,121 | $539,306 | | **Total Liabilities** | $495,011 | $488,005 | | **Total AIG Shareholders' Equity** | $43,385 | $45,351 | | **Total Equity** | $49,110 | $51,301 | Condensed Consolidated Statements of Cash Flows | Indicator | Three Months Ended March 31, 2024 (in millions) | Three Months Ended March 31, 2023 (in millions) | | :--- | :--- | :--- | | **Net Cash Provided by Operating Activities** | $519 | $497 | | **Net Cash Provided by (Used in) Investing Activities** | $308 | $(1,474) | | **Net Cash Provided by (Used in) Financing Activities** | $(1,141) | $817 | | **Net Decrease in Cash and Restricted Cash** | $(343) | $(158) | [Note 1. Basis of Presentation](index=8&type=section&id=Note%201.%20Basis%20of%20Presentation) Financial statements are prepared under U.S. GAAP, with AIG consolidating Corebridge Financial, Inc. after its AIG Life Limited sale - On April 8, 2024, Corebridge completed the sale of AIG Life Limited to Aviva plc, receiving gross proceeds of **£453 million ($569 million)**[21](index=21&type=chunk) - As of March 31, 2024, AIG holds a **52.7%** ownership stake in Corebridge and continues to consolidate Corebridge in its financial statements. Blackstone Inc. holds a **10.1%** equity stake in Corebridge[22](index=22&type=chunk) [Note 3. Segment Information](index=10&type=section&id=Note%203.%20Segment%20Information) AIG reports across General Insurance, Life and Retirement, and Other Operations, with Q1 2024 adjusted pre-tax income of **$1.36 billion** for General Insurance and **$991 million** for Life and Retirement Adjusted Pre-tax Income (Loss) by Segment (in millions) | Segment | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | **General Insurance** | $1,358 | $1,248 | | **Life and Retirement** | $991 | $886 | | **Other Operations** | $(408) | $(491) | | **Total Adjusted Pre-tax Income** | $1,941 | $1,643 | [Note 4. Held-For-Sale Classification](index=12&type=section&id=Note%204.%20Held-For-Sale%20Classification) As of March 31, 2024, AIG classified **$2.39 billion** in assets and **$1.81 billion** in liabilities as held-for-sale, primarily AIG Life Limited and real estate Assets and Liabilities Held-For-Sale (in millions) | Category | March 31, 2024 | December 31, 2023 | | :--- | :--- | :--- | | **Total Assets Held for Sale** | $2,388 | $2,268 | | **Total Liabilities Held for Sale** | $1,813 | $1,775 | [Note 5. Fair Value Measurements](index=13&type=section&id=Note%205.%20Fair%20Value%20Measurements) AIG details **$346.2 billion** in assets and liabilities measured at fair value, categorized by Level 1, 2, and 3, with a significant portion in Level 2 bonds available for sale Assets and Liabilities Measured at Fair Value on a Recurring Basis (March 31, 2024, in millions) | Category | Level 1 | Level 2 | Level 3 | Total | | :--- | :--- | :--- | :--- | :--- | | **Assets** | | | | | | Bonds available for sale | $188 | $202,753 | $29,546 | $232,487 | | Separate account assets | $91,859 | $3,314 | $— | $95,173 | | **Total Assets (net of netting)** | **$95,743** | **$221,765** | **$35,850** | **$346,212** | | **Liabilities** | | | | | | Policyholder contract deposits | $— | $63 | $8,550 | $8,613 | | Market risk benefit liabilities | $— | $— | $5,167 | $5,167 | - Level 3 assets, valued using significant unobservable inputs, totaled **$35.9 billion** at March 31, 2024, increasing from **$33.0 billion** at year-end 2023, primarily due to purchases, sales, and unrealized gains[51](index=51&type=chunk)[52](index=52&type=chunk)[54](index=54&type=chunk) [Note 6. Investments](index=27&type=section&id=Note%206.%20Investments) AIG's investment portfolio, primarily **$232.5 billion** in bonds available for sale, generated **$3.9 billion** in net investment income for Q1 2024, an **11%** increase year-over-year, despite **$424 million** in net realized losses Securities Available for Sale (Fair Value, in millions) | Category | March 31, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Corporate debt | $135,818 | $138,432 | | Mortgage-backed, asset-backed and collateralized | $68,819 | $64,569 | | Non-U.S. governments | $11,968 | $12,453 | | Obligations of states, municipalities | $10,093 | $10,663 | | U.S. government & sponsored entities | $5,789 | $5,616 | | **Total** | **$232,487** | **$231,733** | Net Investment Income (in millions) | Component | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Available for sale fixed maturity securities | $3,162 | $2,789 | | Interest on mortgage and other loans | $706 | $626 | | Other | $35 | $185 | | **Total Net Investment Income** | **$3,904** | **$3,533** | - Net realized losses totaled **$424 million** in Q1 2024, a significant improvement from the **$1.9 billion** loss in Q1 2023, largely due to a **$1.2 billion** swing in net realized gains (losses) on the Fortitude Re funds withheld embedded derivative[111](index=111&type=chunk) [Note 12. Insurance Liabilities](index=46&type=section&id=Note%2012.%20Insurance%20Liabilities) Total insurance liabilities include **$70.1 billion** for unpaid losses, **$59.0 billion** for future policy benefits, and **$163.7 billion** in policyholder contract deposits as of March 31, 2024 Key Insurance Liabilities (in billions) | Liability | March 31, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Unpaid Losses and Loss Adjustment Expenses | $70.1 | $70.4 | | Future Policy Benefits | $59.0 | $58.6 | | Policyholder Contract Deposits | $163.7 | $162.0 | - For the three months ended March 31, 2024, there was no prior year loss reserve development recognized, excluding discount and amortization of deferred gain, compared to a favorable development of **$27 million** in the same period of 2023[191](index=191&type=chunk) [Note 16. Equity](index=59&type=section&id=Note%2016.%20Equity) In Q1 2024, AIG repurchased **23.4 million** common shares for **$1.7 billion** and redeemed **$500 million** in preferred stock, followed by a new **$10.0 billion** share repurchase authorization and an **11%** dividend increase in April 2024 - In Q1 2024, AIG repurchased **23.4 million** common shares, reducing shares outstanding from **688.8 million** to **671.0 million**[250](index=250&type=chunk) - On March 15, 2024, AIG redeemed all **20,000** outstanding shares of its Series A Preferred Stock for an aggregate price of **$500 million**[247](index=247&type=chunk) - On April 30, 2024, the Board of Directors increased the quarterly common stock dividend by **11%** to **$0.40 per share** and authorized a new **$10.0 billion** share repurchase program[252](index=252&type=chunk)[253](index=253&type=chunk) [Note 17. Earnings Per Common Share (EPS)](index=63&type=section&id=Note%2017.%20Earnings%20Per%20Common%20Share%20(EPS)) AIG reported Q1 2024 basic EPS of **$1.75** and diluted EPS of **$1.74**, a substantial increase from **$0.03** in Q1 2023, reflecting significant net income growth EPS Calculation | Metric | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Net Income Attributable to AIG Common Shareholders (millions) | $1,194 | $23 | | Weighted Average Shares Outstanding - Basic (millions) | 682.6 | 738.7 | | Weighted Average Shares Outstanding - Diluted (millions) | 688.0 | 744.1 | | **Basic EPS** | **$1.75** | **$0.03** | | **Diluted EPS** | **$1.74** | **$0.03** | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=67&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses strong Q1 2024 performance, highlighting increased net income from improved underwriting and investment income, strategic capital management, and the impact of interest rates and currency volatility [Executive Summary](index=73&type=section&id=Executive%20Summary) AIG's Q1 2024 performance, across General Insurance, Life and Retirement, and Other Operations, was influenced by rising interest rates improving yields but increasing annuity surrenders, alongside currency volatility - AIG's operating structure comprises three segments: General Insurance (North America, International), Life and Retirement (Individual, Group, Life, Institutional), and Other Operations (Corporate, asset management, eliminations)[292](index=292&type=chunk)[293](index=293&type=chunk) - The rising interest rate environment has improved overall portfolio yields, with the yield pickup on new investments averaging **150 basis points** over dispositions in Q1 2024, though it also increased annuity surrenders[297](index=297&type=chunk)[300](index=300&type=chunk) - The strengthening of the U.S. dollar, particularly a **10%** increase against the Japanese Yen year-over-year, impacts reported growth trends for international operations, though the net effect on underwriting results is largely mitigated[304](index=304&type=chunk)[306](index=306&type=chunk) [Consolidated Results of Operations](index=76&type=section&id=Consolidated%20Results%20of%20Operations) AIG's Q1 2024 net income attributable to common shareholders increased by **$1.2 billion** to **$1.19 billion**, driven by favorable changes in realized gains and higher net investment income, with adjusted pre-tax income rising to **$1.9 billion** - The increase in net income was primarily driven by a **$1.2 billion** favorable change in net realized gains on the Fortitude Re funds withheld embedded derivative, higher net investment income of **$371 million**, and a **$565 million** favorable change in the fair value of market risk benefits[310](index=310&type=chunk) Reconciliation to Adjusted Book Value Per Common Share | Metric (in millions, except per share) | March 31, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Total AIG Common Shareholders' Equity | $43,385 | $44,866 | | Less: AOCI (adjusted for Fortitude Re) | $(12,965) | $(12,246) | | Less: Deferred Tax Assets | $4,153 | $4,313 | | **Adjusted Common Shareholders' Equity** | **$52,197** | **$52,799** | | Book Value Per Common Share | $64.66 | $65.14 | | **Adjusted Book Value Per Common Share** | **$77.79** | **$76.65** | [Business Segment Operations](index=80&type=section&id=Business%20Segment%20Operations) In Q1 2024, General Insurance adjusted pre-tax income grew to **$1.36 billion**, Life and Retirement increased to **$991 million**, and Other Operations reduced its loss to **$408 million** Adjusted Pre-tax Income by Segment (in millions) | Segment | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | **General Insurance** | $1,358 | $1,248 | | **Life and Retirement** | $991 | $886 | | **Other Operations** | $(408) | $(491) | | **Total** | **$1,941** | **$1,643** | [Quantitative and Qualitative Disclosures About Market Risk](index=123&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Market risk disclosures are incorporated by reference from the Enterprise Risk Management section of the Management's Discussion and Analysis - The disclosures regarding market risk are incorporated by reference from the Enterprise Risk Management section of the MD&A[494](index=494&type=chunk) [Controls and Procedures](index=123&type=section&id=Item%204.%20Controls%20and%20Procedures) AIG's management concluded that disclosure controls and procedures were effective as of March 31, 2024, with no material changes to internal control over financial reporting during the quarter - Based on an evaluation as of March 31, 2024, AIG's Chief Executive Officer and Chief Financial Officer concluded that the company's disclosure controls and procedures were effective[495](index=495&type=chunk) - No changes occurred during the quarter ended March 31, 2024, that have materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[496](index=496&type=chunk) Part II – Other Information [Legal Proceedings](index=124&type=section&id=Item%201.%20Legal%20Proceedings) For a detailed discussion of legal proceedings, this section refers to Note 15 of the Condensed Consolidated Financial Statements - For details on legal proceedings, the report refers to Note 15 of the Condensed Consolidated Financial Statements[497](index=497&type=chunk) [Risk Factors](index=124&type=section&id=Item%201A.%20Risk%20Factors) This section directs readers to the risk factors discussed in Part I, Item 1A of the company's 2023 Annual Report on Form 10-K - The report refers to the Risk Factors section of the 2023 Annual Report for a detailed discussion of potential risks[498](index=498&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=124&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) In Q1 2024, AIG repurchased **23.4 million** common shares for **$1.7 billion**, with a new **$10.0 billion** repurchase program authorized on April 30, 2024 Share Repurchases in Q1 2024 | Period | Total Shares Repurchased | Average Price Paid per Share* | | :--- | :--- | :--- | | January 1-31 | 8,017,057 | $68.51 | | February 1-29 | 7,816,140 | $70.02 | | March 1-31 | 7,557,502 | $75.57 | | **Total** | **23,390,699** | **$71.30** | - On April 30, 2024, the Board of Directors authorized a new repurchase program for **$10.0 billion** of AIG Common Stock, which includes the approximately **$3.9 billion** remaining from the prior authorization[500](index=500&type=chunk)

Core Insights - American International Group, Inc. (AIG) reported first-quarter 2024 adjusted earnings per share of $1.77, exceeding the Zacks Consensus Estimate by 6.6% and improving 8.6% year over year [1] - Operating revenues reached $12.5 billion, a 0.8% year-over-year increase, surpassing the consensus mark by 3.6% [1] Quarterly Operational Update - Premiums totaled $8.2 billion, down 3.7% year over year, but exceeded the Zacks Consensus Estimate of $7.8 billion [2] - Total net investment income rose 11% year over year to $3.9 billion, driven by increased income from fixed maturity securities and loans [2] - Total benefits, losses, and expenses decreased 6.1% year over year to $10.5 billion, lower than estimates [2] - Adjusted return on common equity improved to 9.3%, up 60 basis points year over year [2] Segmental Performances General Insurance - Net premiums written fell to $4.5 billion, a 35% year-over-year decline, primarily due to softness in Financial Lines [3] - Underwriting income increased 19% year over year to $596 million, supported by strong contributions from North America Personal Insurance [3] - Catastrophe losses decreased significantly by 59.8% year over year to $106 million [3] Life & Retirement - Premiums and fees grew 6% year over year to $3.1 billion, with premiums and deposits increasing 2% to $10.7 billion [5] - Adjusted revenues rose 10.2% year over year to $5.9 billion, surpassing the Zacks Consensus Estimate [5] - Adjusted pre-tax income improved 12% year over year to $991 million, although it missed the consensus estimate [5] Financial Position (As of Mar 31, 2024) - Cash balance stood at $1.8 billion, down 15.7% from the end of 2023 [6] - Total assets increased by 0.9% to $544.1 billion [6] - Total equity decreased by 4.3% to $49.1 billion, while total debt to total capital improved to 28.1% [6] - Adjusted book value per share grew 3% year over year to $77.79 [6] Capital Deployment Update - AIG repurchased shares worth $1.7 billion and distributed $250 million in dividends [7] - Management authorized an increase of up to $10 billion in share buyback authorization effective from May 2024 [7] - A quarterly dividend hike of 11% was announced, raising the dividend to 40 cents per common share [7] Performances of Other Insurers - Arch Capital Group Ltd. reported operating income of $2.45 per share, beating estimates by 18.9% and showing a 41.6% year-over-year increase [9] - Cincinnati Financial Corporation's operating income surged 93.2% year over year to $1.72 per share, although total operating revenues missed estimates [10] - Kinsale Capital's net operating earnings reached $3.50 per share, exceeding estimates by 5.1% and increasing 43.4% year over year [11]

Financial Data and Key Metrics Changes - Adjusted after-tax income was $1.2 billion or $1.77 per diluted common share, representing a 9% increase in earnings per share year-over-year [9] - Consolidated net investment income on an adjusted pretax income basis was $3.5 billion, a 13% increase year-over-year [9] - General insurance underwriting income was $596 million, a 19% increase year-over-year [9] - The accident year combined ratio excluding catastrophes improved by 30 basis points to 88.4% [10] Business Line Data and Key Metrics Changes - Life & Retirement segment reported premiums and deposits of $10.7 billion, the highest quarterly result in the last decade, with strong APTI growth of 12% [10] - General Insurance net premiums written were $4.5 billion, reflecting the impact of divestitures [14] - North America Commercial net premiums written grew 4%, with Lexington growing 24% [14] - International Commercial net premiums written were flat, with International Property growing 23% [16] Market Data and Key Metrics Changes - Global Commercial net premiums written growth was 1% year-over-year when excluding divestitures [14] - North America Financial Lines declined 4% year-over-year, indicating a challenging market environment [15] - International Financial Lines experienced a 5% decline [16] Company Strategy and Development Direction - The company aims for a 10% plus ROCE post-deconsolidation of Corebridge, with a focus on underwriting excellence and disciplined capital management [32] - AIG Next initiative is expected to generate approximately $500 million in annual run rate savings by the end of 2025 [33] - The company is committed to reducing its ownership stake in Corebridge and exploring strategic alternatives for maximizing long-term value [12][13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to deliver sustained profitability and improve combined ratios [32] - The competitive environment is conducive for growth, particularly in excess and surplus lines, despite challenges in financial lines [54] - The company anticipates continued financial improvement driven by higher earned premiums and lower loss ratios [19] Other Important Information - The AIG Board approved an 11% increase in the quarterly common stock dividend to $0.40 per share [11] - The company returned over $2.4 billion to shareholders through stock repurchases and dividends [11] - AIG's total debt was reduced to $9.8 billion, a decrease of over $12 billion since the end of 2021 [29] Q&A Session Summary Question: Regarding inorganic opportunities and capital management expectations - Management confirmed commitment to the outlined capital management structure, indicating that while inorganic opportunities are not a priority, they are not ruled out if compelling [52] Question: Competitive environment relative to growth - Management noted that while the market is challenging, there are still opportunities for growth, particularly in specialty and casualty lines, despite some noise in premium written [54] Question: Timeline for Corebridge deconsolidation - Management expects to finalize the Corebridge deconsolidation by the end of the second quarter, subject to market conditions [58] Question: Share count target and Corebridge impact - The share count target of 550 million to 600 million includes expectations for future sell-downs of Corebridge shares [60] Question: Reinsurance strategy and capital usage - Management is comfortable taking more net risk but emphasizes a strategic approach to reinsurance to control volatility and improve underwriting results [66]

Core Insights - American International Group (AIG) reported $12.47 billion in revenue for Q1 2024, a year-over-year increase of 0.8% and a surprise of +3.57% over the Zacks Consensus Estimate of $12.04 billion [1] - The earnings per share (EPS) for the same period was $1.77, compared to $1.63 a year ago, resulting in an EPS surprise of +6.63% over the consensus estimate of $1.66 [1] Financial Metrics - Combined Ratio for Total General Insurance was 89.8%, better than the estimated 90.7% [2] - Expense Ratio for Total General Insurance was 31.8%, compared to the average estimate of 32% [2] - Loss Ratio for Total General Insurance was 58%, slightly better than the average estimate of 58.7% [2] - Combined Ratio for International - Commercial Lines was 83.6%, outperforming the four-analyst average estimate of 87.9% [2] - Adjusted Revenue for Life and Retirement - Net investment income was $2.65 billion, exceeding the estimate of $2.64 billion and representing a +16.2% change year-over-year [2] - General Insurance - Net premiums earned were $5.79 billion, slightly below the estimate of $5.80 billion, reflecting a year-over-year decline of -7.6% [2] - Adjusted Revenue for Group Retirement was $689 million, compared to the estimate of $693.39 million, showing a +0.9% change year-over-year [2] - Adjusted Revenue for Life Insurance was $1.21 billion, below the average estimate of $1.28 billion, indicating a -2.8% change year-over-year [2] - Adjusted Revenue for Institutional Markets was $2.33 billion, significantly above the estimate of $1.62 billion, representing a +19.3% change year-over-year [2] - Adjusted Revenue for Life and Retirement - Premiums was $2.36 billion, exceeding the estimate of $1.73 billion, with a +7.3% change year-over-year [2] - Adjusted Revenue for Life and Retirement - Policy fees was $714 million, slightly below the estimate of $722.40 million, with a +2.3% change year-over-year [2] - Adjusted Revenue for Individual Retirement was $1.69 billion, matching the estimate and showing a +13.6% change year-over-year [2] Stock Performance - AIG shares have returned -3.5% over the past month, compared to the Zacks S&P 500 composite's -4.1% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

[Q1 2024 Financial Highlights](index=1&type=section&id=AIG%20Reports%20Strong%20First%20Quarter%202024%20Results) AIG reported strong Q1 2024 financial results with increased net income, improved General Insurance underwriting, and significant capital returns to shareholders [Q1 2024 Performance Overview](index=1&type=section&id=AIG%20Reports%20Strong%20First%20Quarter%202024%20Results_Overview) AIG's Q1 2024 results featured strong net income, 19% General Insurance underwriting income growth, and $3 billion in capital management Q1 2024 Performance Metrics | Metric | Q1 2024 Value | YoY Change | | :-------------------------------------- | :------------ | :--------- | | Net income per diluted share | $1.74 | | | Adjusted after-tax income per diluted share | $1.77 | | | General Insurance underwriting income | $596 million | +19% | | General Insurance adjusted pre-tax income | $1.4 billion | +9% | | General Insurance combined ratio | 89.8% | -2.1 pts | | General Insurance accident year combined ratio, as adjusted | 88.4% | -0.3 pts | | Return on common equity (ROCE) | 10.8% | | | Adjusted ROCE | 9.3% | | - AIG executed nearly **$3 billion** of capital management actions in Q1, including returning **$2.4 billion** to shareholders through **$1.7 billion** of common stock repurchases and **$250 million** of dividends[2](index=2&type=chunk) - AIG's Board declared an **11% increase** in quarterly common stock dividend to **$0.40 per share** and increased the share repurchase authorization to **$10.0 billion**[2](index=2&type=chunk) [CEO Commentary](index=1&type=section&id=AIG%20Chairman%20%26%20Chief%20Executive%20Officer%20Peter%20Zaffino%20said) CEO Peter Zaffino highlighted AIG's strong Q1 2024 results, noting General Insurance profitability and Life & Retirement performance - AIG began 2024 with very strong momentum, delivering on strategic and operational progress and achieving exceptional financial results, positioning for strength ahead of Corebridge Financial's deconsolidation[3](index=3&type=chunk) - General Insurance showed impressive Commercial Lines profitability with a combined ratio of **89.8%** (improved **2.1 points YoY**), benefiting from strong underwriting performance and low catastrophe losses[4](index=4&type=chunk) - Life & Retirement's solid financial results were driven by higher base portfolio spread income and strong sales, with total premiums and deposits of **$10.7 billion**[6](index=6&type=chunk) - AIG expects to continue building momentum through "AIG Next" initiatives, Corebridge deconsolidation, and delivering underwriting excellence to enhance shareholder value and achieve an adjusted ROCE exceeding **10%**[8](index=8&type=chunk) [Consolidated Financial Summary](index=3&type=section&id=FINANCIAL%20SUMMARY) AIG's Q1 2024 consolidated financial summary shows significant growth in net income, increased net investment income, and robust capital management actions [Net Income and Adjusted After-Tax Income (AATI)](index=3&type=section&id=For%20the%20first%20quarter%20of%202024%2C%20net%20income%20attributable%20to%20AIG%20common%20shareholders) AIG's net income rose to $1.2 billion in Q1 2024 due to realized gains, while adjusted after-tax income remained flat Net Income and AATI Performance | Metric | Q1 2023 | Q1 2024 | Change | | :------------------------------------------------------------------ | :----------- | :----------- | :----------- | | Net income attributable to AIG common shareholders | $23 million | $1,194 million | +$1,171 million | | Net income per diluted share attributable to AIG common shareholders | $0.03 | $1.74 | +$1.71 | | Adjusted after-tax income (AATI) | $1,211 million | $1,216 million | +$5 million | | AATI per diluted common share | $1.63 | $1.77 | +$0.14 | - The increase in net income was primarily driven by net realized gains on Fortitude Re funds withheld embedded derivative, compared to net realized losses in the prior year quarter[10](index=10&type=chunk) - AATI was flat year-over-year, reflecting higher underwriting and net investment income in General Insurance and improved AIG Other Operations, mostly offset by a **20% decrease** in Corebridge's earnings due to reduced AIG ownership[10](index=10&type=chunk) [Net Investment Income](index=3&type=section&id=Total%20net%20investment%20income%20for%20the%20first%20quarter%20of%202024) Total net investment income increased 11% to $3.9 billion in Q1 2024, primarily from higher fixed maturity securities income Net Investment Income Summary | Metric | Q1 2023 | Q1 2024 | Change | | :----------------------------------- | :----------- | :----------- | :----- | | Total net investment income | $3,533 million | $3,904 million | +11% | | Total net investment income, APTI basis | $3,075 million | $3,468 million | +13% | - The increase was primarily driven by higher income from fixed maturity securities and loans due to higher reinvestment rates, partially offset by lower alternative investment returns[11](index=11&type=chunk) - In General Insurance, net investment income was up **2%** from the prior year quarter, or about **7%** excluding the impact of the Validus sale[11](index=11&type=chunk) [Book Value and Capital Management](index=3&type=section&id=Book%20value%20per%20common%20share%20was%20%2464.66%20as%20of%20March%2031%2C%202024) Book value per common share increased 10% to $64.66, and AIG returned $2.4 billion to shareholders through capital management actions Book Value Per Common Share | Metric | March 31, 2023 | March 31, 2024 | Change (YoY) | | :----------------------------------- | :------------- | :------------- | :----------- | | Book value per common share | $58.87 | $64.66 | +10% | | Adjusted book value per common share | $75.87 | $77.79 | +3% | - AIG returned **$2.4 billion** to shareholders in Q1 2024, comprising **$1.7 billion** in common stock repurchases (approx. **23 million shares**) and **$250 million** in common and preferred dividends[13](index=13&type=chunk) - The company also redeemed **$500 million** of preferred stock and repaid **$459 million** of maturing debt, leading to a decrease in the total debt and preferred stock to total capital ratio to **28.1%** (from **28.5%** at Dec 31, 2023)[13](index=13&type=chunk)[14](index=14&type=chunk) [Dividends and Share Repurchases](index=3&type=section&id=On%20April%2030%2C%202024%2C%20the%20AIG%20Board%20of%20Directors%20declared%20a%20quarterly%20cash%20dividend) AIG's Board declared an 11% dividend increase to $0.40 per share and raised the share repurchase authorization to $10.0 billion - AIG's Board of Directors declared a quarterly cash dividend of **$0.40 per share** on common stock, an **11% increase** from prior quarterly dividends[2](index=2&type=chunk)[14](index=14&type=chunk) - This marks the second consecutive year of **10%+ dividend increases**[2](index=2&type=chunk) - The share repurchase authorization was increased to **$10.0 billion**, effective May 1[2](index=2&type=chunk)[7](index=7&type=chunk) [Consolidated Financial Data Table](index=4&type=section&id=FINANCIAL%20SUMMARY_Table) This table summarizes AIG's key consolidated financial metrics for Q1 2023 and 2024, including net income, investment income, and equity ratios Consolidated Financial Data | ($ in millions, except per common share amounts) | Three Months Ended 2023 | March 31, 2024 | | :----------------------------------------------- | :---------------------- | :------------- | | Net income attributable to AIG common shareholders | $23 | $1,194 | | Net income per diluted share | $0.03 | $1.74 | | Net investment income | $3,533 | $3,904 | | Adjusted pre-tax income (loss) | $1,643 | $1,941 | | Adjusted after-tax income attributable to AIG common shareholders | $1,211 | $1,216 | | Adjusted after-tax income per diluted share | $1.63 | $1.77 | | Return on common equity | 0.2% | 10.8% | | Adjusted return on common equity | 8.7% | 9.3% | | Book value per common share | $58.87 | $64.66 | | Adjusted book value per common share | $75.87 | $77.79 | [Segment Performance](index=5&type=section&id=GENERAL%20INSURANCE) AIG's segments demonstrated strong performance in Q1 2024, with General Insurance showing improved underwriting and Life & Retirement achieving higher adjusted pre-tax income [General Insurance](index=5&type=section&id=GENERAL%20INSURANCE_Segment) General Insurance reported a 19% underwriting income increase and a 2.1 point combined ratio improvement to 89.8%, with comparable net premiums written growth [Financial Performance](index=5&type=section&id=GENERAL%20INSURANCE_Financial%20Performance) General Insurance financial performance in Q1 2024 showed a 19% increase in underwriting income and a 9% rise in adjusted pre-tax income General Insurance Financial Metrics | Metric | Q1 2023 | Q1 2024 | Change | | :-------------------------- | :----------- | :----------- | :---------- | | Underwriting income | $502 million | $596 million | +19% | | Adjusted pre-tax income | $1,248 million | $1,358 million | +9% | | Net investment income, APTI basis | $746 million | $762 million | +2% | | Return on adjusted segment common equity | 11.6% | 13.3% | +1.7 pts | - Underwriting income increased by **$94 million**, including **$106 million** of catastrophe-related charges (**1.9 loss ratio points**), down from **$264 million** (**4.2 loss ratio points**) in the prior year[21](index=21&type=chunk) [Underwriting Ratios](index=5&type=section&id=Underwriting%20ratios%3A) General Insurance underwriting ratios improved significantly, with the combined ratio decreasing by 2.1 points to 89.8% in Q1 2024 General Insurance Underwriting Ratios | Ratio | Q1 2023 | Q1 2024 | Change (pts) | | :---------------------------------------- | :------ | :------ | :----------- | | General Insurance (GI) Combined Ratio (CR) | 91.9 | 89.8 | -2.1 | | GI Loss ratio | 59.9 | 58.0 | -1.9 | | GI Accident year combined ratio, as adjusted | 88.7 | 88.4 | -0.3 | | International Commercial Lines CR | 91.9 | 83.6 | -8.3 | | North America Personal Insurance CR | 107.9 | 102.3 | -5.6 | - On a comparable basis, the General Insurance combined ratio improved **3.8 points** and the accident year combined ratio, as adjusted, improved **1.6 points**[21](index=21&type=chunk) - International Commercial Lines combined ratio improvement was mostly driven by a decrease in loss ratio, reflecting lower catastrophe losses and favorable prior year development[22](index=22&type=chunk)[23](index=23&type=chunk) [Net Premiums Written Analysis](index=5&type=section&id=Net%20premiums%20written) Net premiums written for General Insurance decreased on a reported basis but showed growth on a comparable basis, particularly in North America Commercial Lines Net Premiums Written (NPW) | Segment | Q1 2023 NPW | Q1 2024 NPW | Reported Change | Comparable Basis Change | | :------------------------------------ | :----------- | :----------- | :-------------- | :---------------------- | | General Insurance | $6,965 million | $4,512 million | (35)% | 0.4% | | North America Commercial Lines | $3,367 million | $1,033 million | (69)% | 4.4% | | International Commercial Lines | $1,996 million | $1,939 million | (3)% | (1.0)% | - The reported decrease in NPW was a result of 2023 divested businesses and changes in reinsurance structures[4](index=4&type=chunk)[21](index=21&type=chunk) - North America Commercial Lines NPW grew **4%** on a comparable basis, reflecting continued rate increases, higher renewal retentions, and strong new business production[21](index=21&type=chunk) [Net Investment Income](index=7&type=section&id=General%20Insurance%20net%20investment%20income%20on%20an%20APTI%20basis) General Insurance net investment income on an APTI basis increased by 2%, driven by higher reinvestment rates General Insurance Net Investment Income | Metric | Q1 2023 | Q1 2024 | Change | | :-------------------------------------- | :----------- | :----------- | :----- | | GI Net investment income, APTI basis | $746 million | $762 million | +2% | | GI Net investment income, APTI basis (excl. Validus Re) | $715 million | $762 million | +7% | - The increase was driven by higher reinvestment rates from fixed maturity securities and loans, partially offset by lower alternative investment returns and a reduction in assets due to 2023 divested businesses[24](index=24&type=chunk) [Life and Retirement](index=8&type=section&id=LIFE%20AND%20RETIREMENT) Life and Retirement's adjusted pre-tax income increased 12% to $991 million, and premiums and deposits grew 2% to $10.7 billion [Financial Performance](index=8&type=section&id=LIFE%20AND%20RETIREMENT_Financial%20Performance) Life and Retirement's adjusted pre-tax income increased 12%, driven by strong performance in Individual Retirement and Institutional Markets Life and Retirement Financial Metrics | Metric | Q1 2023 | Q1 2024 | Change | | :-------------------------- | :----------- | :----------- | :---------- | | Adjusted pre-tax income | $886 million | $991 million | +12% | | Individual Retirement APTI | $533 million | $622 million | +17% | | Institutional Markets APTI | $84 million | $112 million | +33% | | Return on adjusted segment common equity | 10.7% | 11.9% | +1.2 pts | - The increase in APTI was primarily due to higher base portfolio spread income, fee income, and expense efficiencies, partially offset by non-recurring reinsurance adjustments in the Life insurance business[27](index=27&type=chunk) [Premiums and Deposits](index=8&type=section&id=Premiums%20and%20fees) Life and Retirement reported a 2% increase in premiums and deposits, reaching $10.7 billion, with strong growth in Institutional Markets Life and Retirement Premiums and Deposits | Metric | Q1 2023 | Q1 2024 | Change | | :-------------------------- | :----------- | :----------- | :----- | | Premiums and fees | $2,899 million | $3,076 million | +6% | | Premiums and deposits | $10,448 million | $10,671 million | +2% | | Institutional Markets Premiums and deposits | $2,163 million | $2,586 million | +20% | - Fixed Annuities sales were up **16%** and Institutional Markets sales were up **20%**, driven by a higher volume of transactional business, including **$1.8 billion** of pension risk transfer transactions[27](index=27&type=chunk) [Net Investment Income](index=8&type=section&id=Net%20investment%20income%20on%20an%20APTI%20basis%20was%20%242.6%20billion) Life and Retirement's net investment income on an APTI basis increased 16% to $2.6 billion, driven by fixed maturity securities Life and Retirement Net Investment Income | Metric | Q1 2023 | Q1 2024 | Change | | :----------------------------------- | :----------- | :----------- | :----- | | Net investment income, APTI basis | $2,277 million | $2,645 million | +16% | - The increase was driven by higher income from fixed maturity securities and loans, partially offset by lower alternative investment income[28](index=28&type=chunk) [Other Operations](index=9&type=section&id=OTHER%20OPERATIONS) Other Operations improved its adjusted pre-tax loss by 17% to $(408) million, driven by higher investment income and reduced expenses Other Operations Financial Metrics | Metric | Q1 2023 | Q1 2024 | Change (Improvement) | | :-------------------------- | :------------- | :------------- | :------------------- | | Adjusted pre-tax loss | $(491) million | $(408) million | +17% | | Corporate and Other | $(270) million | $(194) million | +28% | | Corebridge, Inc. | $(200) million | $(174) million | +13% | - Corporate and Other adjusted pre-tax loss improved by **$76 million**, primarily due to higher income on parent short-term investments, lower general operating expenses, and reduced AIG interest expenses[31](index=31&type=chunk) [Forward-Looking Statements & Risk Factors](index=10&type=section&id=Certain%20statements%20in%20this%20press%20release) This section outlines forward-looking statements and potential risks that could impact AIG's future financial performance and strategic initiatives [Forward-Looking Statements & Risk Factors](index=10&type=section&id=Certain%20statements%20in%20this%20press%20release_Content) This section outlines forward-looking statements and details various risks, including economic conditions, catastrophic events, and strategic execution challenges - Forward-looking statements provide management's current expectations for AIG's future operating and financial performance, based on assumptions[34](index=34&type=chunk) - Actual results may differ materially due to various risks, including adverse economic conditions, catastrophic events (natural and man-made), disruptions in IT systems (cyberattacks), and geopolitical events[35](index=35&type=chunk) - Other factors include AIG's ability to successfully dispose of/acquire businesses, realize benefits from Corebridge separation, implement restructuring, and respond to technological advancements like AI[35](index=35&type=chunk) [Non-GAAP Financial Measures & Reconciliations](index=12&type=section&id=COMMENT%20ON%20REGULATION%20G%20AND%20NON-GAAP%20FINANCIAL%20MEASURES) This section defines AIG's non-GAAP financial measures and provides detailed reconciliations to their most comparable GAAP equivalents [Definitions of Non-GAAP Measures](index=12&type=section&id=COMMENT%20ON%20REGULATION%20G%20AND%20NON-GAAP%20FINANCIAL%20MEASURES_Definitions) AIG defines its non-GAAP financial measures, including Adjusted book value, APTI, and AATI, to provide a clearer view of core profitability - Adjusted book value per common share is used to show net worth per share by eliminating items that fluctuate significantly, such as changes in fair value of available-for-sale securities and certain deferred tax assets[42](index=42&type=chunk) - Adjusted Pre-tax Income (APTI) excludes items like changes in fair value of hedging securities, net change in market risk benefits, and net realized gains/losses to focus on underlying operating performance[49](index=49&type=chunk) - Underwriting ratios (loss, expense, combined) measure underwriting performance, while Accident year loss and combined ratios, as adjusted, exclude catastrophe losses and prior year development to assess ongoing results[52](index=52&type=chunk)[53](index=53&type=chunk) [Detailed Reconciliations](index=16&type=section&id=American%20International%20Group%2C%20Inc.%20Selected%20Financial%20Data%20and%20Non-GAAP%20Reconciliation) This section provides detailed tables reconciling GAAP figures to various non-GAAP measures, including adjusted income, book value, and underwriting ratios Reconciliation of Net Income to Adjusted Income | Reconciliation Item | Q1 2023 (Pre-tax) | Q1 2024 (Pre-tax) | Q1 2023 (After-tax) | Q1 2024 (After-tax) | | :------------------------------------------------ | :---------------- | :---------------- | :------------------ | :------------------ | | Net income attributable to AIG common shareholders | N/A | N/A | $23 | $1,194 | | Adjusted pre-tax income | $1,643 | $1,941 | N/A | N/A | | Adjusted after-tax income attributable to AIG common shareholders | N/A | N/A | $1,211 | $1,216 | Reconciliation of Book Value to Adjusted Book Value | Reconciliation Item | March 31, 2023 | December 31, 2023 | March 31, 2024 | | :------------------------------------------------ | :------------- | :---------------- | :------------- | | Book value per common share | $58.87 | $65.14 | $64.66 | | Adjusted book value per common share | $75.87 | $76.65 | $77.79 | Reconciliation of Net Premiums Written (NPW) | Reconciliation Item | Q1 2023 | Q1 2024 | | :------------------------------------------------ | :------ | :------ | | General Insurance Net Premiums Written (Reported) | $6,965 | $4,512 | | General Insurance Net Premiums Written (Comparable Basis) | N/A | 0.4% Inc. | | North America Commercial Lines NPW (Comparable Basis) | N/A | 4.4% Inc. |

In its upcoming report, American International Group (AIG) is predicted by Wall Street analysts to post quarterly earnings of $1.68 per share, reflecting an increase of 3.1% compared to the same period last year. Revenues are forecasted to be $12.04 billion, representing a year-over-year decrease of 2.7%.The current level reflects an upward revision of 0.8% in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised ...

Looking for a stock that has been consistently beating earnings estimates and might be well positioned to keep the streak alive in its next quarterly report? American International Group (AIG) , which belongs to the Zacks Insurance - Multi line industry, could be a great candidate to consider.This insurer has seen a nice streak of beating earnings estimates, especially when looking at the previous two reports. The average surprise for the last two quarters was 8.22%.For the most recent quarter, American Int ...

Monty Rakusen/DigitalVision via Getty Images American International Group (NYSE:AIG) is a well-known insurance company, for many because of the days of the 2008 Financial Crisis. Yet, it's still here, and things can change with time. I was curious to see if that made it a worthwhile investment in 2024. The market sure seems to believe in it. AIG 1Y Price History (Seeking Alpha) It's up over 48% in the past year! After taking a look, I found myself agreeing, and I'll review AIG's improvements and why, even a ...

Key PointsThese three stocks rise on product demand from the latest breakouts in the construction and housing sectors.Institutions rate them as a Buy, and analysts think EPS could soar above the rest of the industry. Price action indicates momentum is present, giving Main Street a leg up to Wall Street's thinking.5 stocks we like better than RayonierInvestors often follow the latest trends in the U.S. economy and attempt to align their portfolios with the best industries, some of which could have a breakout ...

Product diversification helps Zacks Multiline Insurance industry players lower concentration risk, ensure uninterrupted revenue generation and improve retention ratio. Better pricing, prudent underwriting, increased exposure and faster economic recovery should benefit MetLife Inc. (MET) , American International Group Inc. (AIG) , Prudential Financial Inc. (PRU) , The Hartford Financial Services Group (HIG) and Assurant Inc (AIZ) . Accelerated digitalization will help in the smooth functioning of the industr ...